Credit and Debit Card Fees to Be Banned
New rules which come into effect on 13 January 2018 will mean it will be illegal for companies to charge customers for paying by a non-commercial card.
The Economic Secretary to the Treasury, Stephen Barclay stated:
“It’s about fairness and transparency”.
“These small charges can really add up and this change will mean shoppers across the country have that bit of extra cash to spend on the things that matter to them.”
In 2010, the amount collected by merchants was nearly £500m.
The new law will only apply to consumers, so surcharges to businesses are permitted, but must not exceed the fee incurred by the merchant. It is important to remember though that the rules are based on how you pay not who you are, so if you use a business credit card you can be charged, but if you’re a business owner using your personal credit card then you cannot.
Please make sure you are ready for these changes, failure to comply could result in a fine and imprisonment.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.